Boeing weighs raising at least $10 bln selling stock, Bloomberg News reports
Adds details and background throughout
Oct 1 (Reuters) -Boeing BA.N is considering raising at least $10 billion by selling new stock, Bloomberg News reported on Tuesday, citing people familiar with the discussions.
The planemaker is working with advisers to explore its options, the report said, adding that raising equity is not likely to happen for at least a month.
Boeing did not immediately respond to Reuters' request for comment. Reuters has not independently verified the report.
The planemaker has been under pressure from slumping production of its strongest-selling 737 MAX jet, after a January incident when a door panel blew off a new model mid-air.
Its finances were further strained after roughly 30,000 Boeing workers represented by the International Association of Machinists and Aerospace Workers in the Seattle and Portland areas walked off the job in September.
Boeing is carrying a heavy debt load of about $60 billion and posted operating cash flow losses of more than $7 billion for the first half of 2024, according to data compiled by LSEG.
The U.S. planemaker had previously signaled it would consider issuing equity as it deals with ongoing safety problems exposed by the January blowout and looming debt maturities.
Industry experts had said Boeing would likely need to raise cash by the end of 2024, with some analysts and investors expecting the company to raise between $10 billion and $12 billion.
Boeing has just under $4.6 billion in bonds and loans coming due by end of 2025, according to data compiled by LSEG.
Shares of the planemaker were down 1.3% in premarket trading.
Reporting by Utkarsh Shetti in Bengaluru; Editing by Shilpi Majumdar
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
